NEU’s access to nearly all A-rated insurers allows us to bring our clients multiple quotes each year, assuring competitive pricing and optimal coverage. Applying our technical knowledge gained through professional training and decades of experience, we work closely with our clients to provide insurance solutions that best fit each client’s individual needs. NEU Business Insurance specialists take pride in providing competitive rates and superior service to clients throughout the state of Florida and the United States.
Property coverage provides physical damage coverage to the structure for covered perils of loss. It is very important to read the policy and review the exclusions. It is also very important to know what form the policy the carrier is using and the valuation method they are using.
- Basic Form Perils – Fire, Lightning, Explosion, Windstorm or Hail, Smoke, Aircraft or Vehicle, Riot, Vandalism, Sprinkler Leaks, Sinkhole or Volcano.
- Special Form Perils – Covers “all risks of physical loss” unless the policy specifically excludes or limits the loss.
- Common Exclusions – Ordinance or Law, Earth movement, Government action, flood, Mold, Wear & tear, animal infestation, mechanical breakdown, pollution, neglect, construction defect.
- Agreed Value Valuation – This coverage is used to remove the coinsurance requirement for covered property. With it, your company agrees that the amount of coverage purchased is adequate, and any coinsurance requirements are waived if the limit of insurance equals the agreed value.
- Replacement Cost Valuation – This loss valuation method pays for the cost to repair or replace damaged items with like kind and quality without deduction for depreciation. This is important since you could face a substantial loss if you must replace property at today’s prices but receive only the depreciated value of the property that was destroyed.
- Co-Insurance – A policy may contain a coinsurance clause requiring that the limit of coverage be a minimum percentage (usually 80%) of the insurable value of your property. If the amount of insurance carried is less than what is required by this clause, any claim payment may be reduced by the same percentage as the deficiency.
- Ordinance or Law – Code upgrade coverage that is in addition to your regular limits of coverage.
- Coverage A – Pays for loss of value of undamaged portion of the existing building that must be demolished and/or removed to conform to municipal ordinance or code.
- Coverage B – Pays for cost of demolition of the undamaged portions of the building necessitated by the enforcement of the building, zoning or land use ordinance or law.
- Coverage C – Pays for the increased expenses incurred to replace the building with one conforming to building laws or ordinances, or to repair the damaged building so that it meets the specifications of current building laws or ordinances.
- Mold – A fungus resulting from a water intrusion that goes unnoticed for some time. Some policies have limited coverage ($15,000) for mold built in.
- Sewer & Drain Backup – Covers damages as a result from sewage or sump pump backups.
- Wind Driven Rain – Covers damages from of wind driving rain into the structure, without have substantial damage to the structure from the wind.
- Terrorism – Covers your structure for physical damages that are deemed acts of terrorism.
- Asbestos – Covers the removal and remediation of the harmful fibers that are mostly in older homes.
General Liability Insurance
General Liability is one of the most important coverages for business clients. It covers against lawsuits alleging bodily injury, personal injury, or property damage due to negligence on the part of the business. This policy will pay the cost to defend the business as well as the damages.
Below are some common exclusions that associations should watch out for when reviewing their general liability policy.
- Terrorism – Covers for negligence in connection with a terrorist act.
- Abuse & Molestation – Covers for actual or threatened abuse or molestation claims.
- Assault & Battery – Covers for negligence due to an actual, threatened, or alleged assault or battery.
- Firearms – Covers for negligence when a firearm is used.
- Absolute Liquor – Covers for claims involving alcoholic beverages.
- Cross Suits – Covers when one member of the business sues another.
- Asbestos – Covers the removal and remediation of the harmful fibers that are mostly in older homes.
- Mold – A fungus resulting from a water intrusion that goes unnoticed for some time.
Business Automobile Insurance
A business auto policy is like a personal auto policy in that it covers property damage, legal bills, and medical expenses. A business auto policy typically has higher limits of coverage and can include coverage for hired, non-owned, borrowed or rented vehicles.
Business Auto Coverages
- Auto Liability – Protects the business by paying for bodily injury, or property damage you become liable for because of a covered automobile accident.
- Medical Payments – Pays medical expenses, up to your coverage limit, for you, your employees and your passengers arising from a motor vehicle accident, regardless of who is at fault.
- Comprehensive – Pays for damage to your vehicle from something other than another vehicle like vandalism, theft, weather events and accidents involving animals.
- Collison – Pays for damage to your vehicle from another vehicle whether you hit another vehicle or object, another vehicle hits you, or your vehicle rolls over, regardless of who is at fault.
- Uninsured and Underinsured Motorist – Pays for medical expenses, loss of income and other damages owed to you, your employees (expenses not covered by workers’ compensation) or your passengers when an accident is caused by an uninsured or underinsured motorist.
- Hired Auto – Provides liability coverage for rented, hired, or borrow vehicles the company does not own.
- Non-Owned Auto – Provides liability coverage for autos the business does not own, lease, or hire.
- Drive Other Car – (DOC) Provides non-owned auto coverage like a personal auto policy when an officer or executive does not carry a personal auto policy.
Directors & Officers Coverage
Another very important coverage for a business is Directors and Officers coverage. It covers the board members and officers of the corporation for wrongful acts. Some policies will also include volunteers, spouses, and subcommittees as insureds for their wrongful acts. Wrongful acts include breach of contract, board failure to adhere to bylaws and breach of fiduciary responsibility, discrimination, misuse of funds, improper notices, and harassment.
Below are some important features that businesses should watch out for when reviewing their director and officer’s policy.
- Defense Outside Limits – Cost of defense is in addition to your limit of coverage.
- Defense Inside Limits – Cost of defense is in included in your limit of coverage.
- Failure to Purchase Insurance – Covers when a board does not purchase a coverage and a loss occurred.
- Hammer Clause – Allows the insured to fight accusation, even if the insurance carriers want to settle.
- Full Prior Acts – Covers claims that happened in the past and just now realized.
- Insured vs Insured – Covers when one member of the board sues another.
A Crime policy protects your business from significant losses caused by a third party or internal employees. Cyber liability covers the economic damage that results from a data breach or other types of cyber-attacks that lead to indirect financial losses. Although these policies are different, they do tend to have overlapping coverages.
Crime Policy Coverages
- Employee Theft – Covers theft from employees.
- Forgery or Alteration – Covers your business against bad checks or bank drafts.
- Computer & Funds Transfer Fraud – Covers theft of money, securities and property resulting from computer or wire transfer.
- Theft of Money & Securities – Covers loss of company money or securities that are either inside or outside the premise.
- Money Orders & Counterfeit Money – Covers loss from the acceptance of fraudulent money orders or counterfeit money.
Cyber Liability Policy Coverages-
- Data Loss, Recovery and Recreation
- Loss of Revenue due to a breach
- Loss of transferred funds
- Cyber extortion
Workers Compensation/Employers Liability
Workers compensation insurance provides medical expenses, lost wages and rehabilitation costs to employees who are injured or become ill “in the course and scope” of their job. It also pays death benefits to families of employees who are killed on the job. The coverage is mandated by each state and the wage and medical benefits vary by state.
There are two parts to a Workers Compensation policy. Part 1 is workers’ compensation and Part 2 is Employers Liability. Workers’ Compensation will pay medical care and compensation for income lost while the employee is recovering. Employers’ liability provides additional legal protection to the business. In the event an employee or their family sues an employer, the policy will pay for legal defense costs and court judgements against the employer.
Non-construction companies with four or more full or part-time employees are required to purchase workers compensation insurance in Florida. All Construction related businesses are required to purchase coverage regardless of the number of employees unless the entity is permitted to file an owner exemption.
Sole-Proprietors and Partners of a non-construction business are not required to cover themselves and are automatically exempt. They must file a notice of election form (WC1415) with the state and insurance company if they choose to be covered.
Corporate officers of a non-construction business can be exempt from coverage if they own stock and are an officer on the board of directors.
LLC members of a non-construction business are treated as employees, but they may elect to be exempt from coverage.
An umbrella policy provides additional limits over the primary policies that are already in place. It is a more cost-effective option for providing higher limits of coverage to protect the business from unexpected lawsuits and liability losses. Once the underlying policy limits have been exhausted, the umbrella policy will respond. Most umbrella policies with provide additional limits to your General Liability, Auto Liability, Directors & Officers, and Workers Compensation policies.
Equipment Breakdown coverage (also called “Boiler & Machinery”) is a form of property insurance that protects the business against financial loss from a sudden and accidental breakdown of mechanical or electrical devices.
Equipment Breakdown coverage is the most common for loss or damage to or from boilers, water heaters, solar heaters, and pressure pipes. However, it also covers the mechanical breakdown of A/C, elevators, back-up generators, electric power panels, and pool and spa equipment. Failure due to wear and tear is not covered under this policy.